Christine Buemann Mortgage Broker

CMHC announced this morning that they will be increasing their premiums across the board. See their press release here Here's a scenario: On a $300k purchase with 5% down, you will currently pay $10,260 in CMHC premiums and have a monthly payment of roughly $1365 After March 17 , on the same purchase, you will be paying $11,400 for CMHC premiums with a monthly payment of roughly $1371 That's a premium increase of $1140 and a monthly payment increase of roughly $6 a month For this mortgage to fit CMHC's recommended 32% max Gross Debt Ratio  the applicants on title would need a combined gross annual income of $75-80k, depending on the property taxes and heating costs This fee increase is in direct response to the last set of changes that were implemented by the Government on January 1st essentially making it more difficult for lenders to provide mortgages in Canada. This increase was expected during 2017and there is speculation that there will be yet another...

Happy New Year everyone! With a new year always comes the previous year's BC Assessment of value. Curious what your home's 2016 value was? Check it out here: https://evaluebc.bcassessment.ca/ http://www.christinebuemann.ca

More breaking news on the mortgage front! The BC Government announced today that they are rolling out a program for First Time Buyers which will match 50% of their down payment up to $37,500. This would be by way of a second mortgage. It will be interest free for the first 5 years however the payments will have to be included in the debt ratios upon application. Timeline: Applications will be accepted as of January 16, 2017, with loans advanced from February 15 to March 31, 2020. To qualify under the BC Home Partnership Program, all applicants who will be registered on title must: • Reside in the home • Be a first-time homebuyer • Be a Canadian citizen or permanent resident for 5 years • Have resided in BC for at least one year • Have a combined gross income of $150,000 or less In addition, for the property to qualify under the BC Home Partnership Program, it must be: • a legal, self-contained, mortgageable residence (not rental or recreational) located in ...

As the dust is settling from the last set of rule changes in October, a more significant set of changes took effect yesterday. The overall impact that they will have is still being speculated by economists all over the country. Every lender has been scrambling to put together new processes and strategies for implementing their new guidelines. Lenders have been changing rates / policies daily so please bear in mind that their turnaround times will likely be a little slower with all banks for the short term. Here are some of the most significant changes we have seen over the last few days: Some lenders have discontinued 30/35 year amortizations, refinances and rental purchases altogether Most lenders have started charging a higher rate for refinances, 30 year amortizations and rental purchases Some lenders have started doing risk based pricing where they require minimum credit scores to have access to certain products Most lenders are cha...

It comes as no surprise that RBC raised their interest rates today, alongside most Canadian mortgage lenders. What they have done differently this time is they have created 2 categories: one for amortizations of 25 years or less and one for longer amortizations. Why is this important? With the new Government rules coming in play at the end of November, many great lenders will be restricted from offering amortizations longer than 25 years . This rule change will impact the big banks the least as they have a different lending structure and can afford more risk. That being said, the rule changes will eliminate a lot of competition for these banks which typically leads to higher rates for consumers.        The rule changes will also affect the refinance and rental mortgage market as well as mortgages over $1M. We will see if any lenders follow suit with RBC and also with their refinance and rental purchase rates. For more informat...

  Interest Rates are starting to rise Bond yields have been putting pressure on fixed interest rates for mortgages. As of this morning, they have started to rise anywhere from .1-.2%. For a $300k mortgage, a rise in rate from the current 2.34% to an average rate of 2.49% would be an increase of $22.30 a month in payment. This also means $2109.32 more in interest over the 5 year term. Don't hesitate to contact me with any questions or concerns. www.christinebuemann.com

PROPERTY TAX TIME It is that time of year again… property tax time! Property taxes are due July 1 st , 2016 and that covers the period from January to December 2016. There are several ways that homeowners can pay their property taxes: Pay them annually or make arrangements at City Hall to make instalments throughout the year. Here is their contact information .Here some information on the pre-payment options . You can also set up pre-payments for your city utilities If you have a mortgage on your property, your lender may pay them on your behalf and take out monthly instalments with your mortgage payment. If you have purchased a home in the last several months, it is important to find out your lender’s guidelines on property tax payments. Some lenders will start collecting for next year and it will still be your responsibility to pay for this year’s taxes. If you cannot find your property tax information, you can search for it here: https://cobweb.princegeorge. ca/ It ...